That is soooo important! Back then lenders handed out toasters and calendars, we joked that the only way you could get a loan was to not need it.
So I wonder, why bail out lenders who started handing out loans? They lost. Why bail out those who bundled the mortgages on a global scale and exploded the credit bubble. They lost. Look at $2/share Bear Stearns. They lost. Hey! it's capitalism. You takes your chances. I thought all these guys hated "government interference." Now look at 'em crowding around Washington.
And you're correct. The housing prices are still relatively high. But what about next year? I wonder.
Why bail out those who bundled the mortgages on a global scale and exploded the credit bubble. They lost.
Because the consequences of not bailing them out are far worse.